Responsible investing holding ground in Canada despite geopolitical uncertainty, survey indicates

Open this photo in gallery:Survey of 1,001 Canadian investors shows 47 per cent of those who already own investments based on ESG factors intend to add to such holdings, while the same percentage plan to maintain their allocations.Brent Lewin/BloombergShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountRetail investors are sticking with securities that have sustainable attributes, and many aim to increase their holdings, despite the geopolitical uncertainty roiling markets, a new survey reveals.In addition, many are boosting their investments in Canadian-based companies as investors pursue assets that fit with their values, according to the research commissioned by the Responsible Investment Association (RIA).The survey of 1,001 Canadian investors showed that, of those who already own investments based on environmental, social and governance, or ESG, factors, 47 per cent intend to add to such holdings. The same percentage plan to maintain their allocations. Just 1 per cent said they plan to reduce ESG-themed investments, the survey said.Of those surveyed, 28 per cent said they currently own sustainable assets. Another 38 per cent said they were unsure whether they did.Long a target of backlash, ESG looks to be headed for a rebrandRIA chief executive officer Patricia Fletcher said the results are heartening given the economic, trade and military conflicts that have injected a slew of new risks into the investing sphere.“There are a lot of new things to talk about on the horizon writ large as it relates to responsible investing because the world is such a crazy place,” Ms. Fletcher said in an interview.“Whether you’re calling it RI or you’re not, so many of the things that are going on are considerations that are underpinned with the factors of environmental, social and governance concerns.”The survey was conducted just before the U.S.-Israeli war on Iran started, so that may affect investor attitudes more, she said.RIA members Addenda Capital, Desjardins Investment Solutions, Mackenzie Investments, National Bank Investments and RBC Global Asset Management contributed to the report. The survey was conducted by Ipsos.The boundaries of ESG have expanded as energy security and sovereignty became priority issues for Canadians in recent years. Responsible investment does not specifically exclude investments in the defence industry any more, for instance.Forty-three per cent of respondents said they are more likely to invest in Canadian companies, compared with 37 per cent most likely to buy into energy and utilities companies developing infrastructure, and 25 per cent favouring defence companies.That does not mean that environmental issues have dropped on priority lists for investors, Ms. Fletcher said. The survey said more than 89 per cent of men and women of all age groups see the environment as their top reason for investing in sustainable assets.The growing imperative of affordability may also have unintended benefits for the environment, she said. The impact of the Middle East conflict on gasoline prices is expected to drive up demand for alternatives such as electric vehicles.Meanwhile, as in past RIA surveys, the results showed the need for more education about responsible investing, targeting both investors and advisers. This is especially important, as the ability to spot greenwashing – false and exaggerated environmental claims – is a top concern, the report said.It said 71 per cent of those surveyed…

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